Ghana Would Have Hit Bankruptcy Without $750m Afreximbank Loan Approval – Report

Parliament House of Ghana The Finance Committee of Parliament has in a recent report detailed the severity of the current economic challenges in the country.

According to the report, Ghana would have gone bankrupt if the Loan Facility Agreement between the government of Ghana and the AfreximBank for a $750 million loan, had not been approved by parliament.

It added that the Bank of Ghana’s international reserves had recorded a slump from $9 billion to about $3 billion.

“These challenges are further exacerbated by the rapidly dwindling reserves of the Bank of Ghana which has declined from $9 billion to about $3 billion. With a monthly demand of over $600 million, the reserves of the central bank may be exhausted in a few months if urgent steps are not taken to shore up the countries reserves,” portions of the report read.

“The Minister of Finance further indicated that, there is an urgent need for the government to secure the $750 million facility to help shore up the reserve position of the Bank of Ghana to avoid the country defaulting on its international commitments and also to avoid the country moving into insolvency,” it added.

Meanwhile, the $750 million loan facility will be spent on some 11 infrastructure projects across the country. These will include road projects.

However, a portion of the loan facility will go toward shoring up the reserve position of the Bank of Ghana.